The Asian naphtha inter-month spread was steep in backwardation because of squeezed supplies after a refinery fire, lack of alternative feedstock and low European cargoes arriving in Asia next month. A backwardated market occurs when the prompt-month price is higher than forward prices.
The premium for front-month March to first-half April hit $9 a tonne, the highest inter-month premium since April 29, 2015. United Arab Emirates' ADNOC has restarted a crude distillation unit (CDU) after a fire at its Ruwais refinery, but traders said that a gasoline unit might still be down and run rates at the CDU could be low.
GASOLINE CRUNCH Asia's gasoline margin was at a four-session high of $11.61 a barrel, caused by supply disruption in the Middle East and maintenance in Indonesia, Asia's top gasoline importer. The gasoline supply crunch in Abu Dhabi could prompt traders to consider moving cargoes towards the Middle East, traders said.
Oil major BP, for instance, has provisionally booked the Flagship Ivy vessel to ship 60,000 tonnes of gasoline from Taiwan to either Singapore or the UAE, industry sources said. The vessel is stationed at CPC's Kaohsiung port in Taiwan and is due to lift gasoline on January 28, ship-tracking data showed. Gasoline cargoes from Taiwan are usually shipped to Singapore and rarely to the UAE.
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